Short answer

In short: Yes — it’s often possible to get van finance with less-than-perfect credit, earlier defaults or a past decline, but it’s not guaranteed. Lenders look beyond a single line on your credit file: the age and size of the default, whether it’s been settled, your business turnover, cashflow and the vehicle being financed all matter. Expect higher rates, stricter terms, more paperwork or specialist lenders. If you want to check your options now, Get a Free Eligibility Check.

Important: UK Business Loans is an introducer. We do not lend or provide regulated financial advice. Submitting an enquiry is not a formal application and does not itself trigger a credit search.

How lenders assess van finance applications

Lenders use a mix of automated credit scoring and manual underwriting. For businesses with imperfect credit the process can be slightly more detailed — they want to understand risk and how you will repay.

Key things lenders check

• Personal and director credit files: CCJs, defaults, bankruptcies, IVA or recent insolvency events. The more recent and larger the problem, the harder it is.
• Business performance: Age of the company, turnover, profit, recurring contracts and recent bank statements (usually 3–6 months).
• Affordability & cashflow: Evidence you can afford monthly repayments — lenders will look at deposits, VAT position and drawings.
• Vehicle details: Age, value, mileage and intended use (e.g. heavy-duty commercial use raises risk).
• Security & guarantees: Deposit amount, trade-in value, director guarantees or third-party guarantors can sway decisions.
• Search type: Initial soft checks are common for matching and won’t affect your credit file; formal applications usually involve hard searches that may appear on your credit report.

Different lenders have different appetites: mainstream banks favour clean files, while specialist or sub-prime lenders consider wider evidence and may accept past problems if other factors look strong.

Types of van finance available if you have imperfect credit

Several vehicle finance products remain usable for businesses with adverse credit — the right one depends on whether you want ownership, flexibility, or lower monthly costs.

• Hire Purchase (HP) — A common route where you pay a deposit then monthly instalments and own the van after the final payment. Suitable if you want ownership and can afford a deposit; lenders like the security of ownership and it’s often available from specialist providers.
• Finance Lease / Contract Hire (operating lease) — Essentially rental. Monthly costs may be lower, but full ownership is not included. Underwriting can be stricter since the vehicle is returned at term end.
• Chattel Mortgage — For VAT-registered businesses buying a van as a business asset. The lender takes a charge but you own the vehicle. Can be useful for businesses with steady VAT-able turnover.
• Secured business loan — If vehicle finance is refused you might secure a business loan against other assets or property. This route can sometimes produce better rates than specialist vehicle lenders but requires qualifying security and higher loan sizes (we typically place from £10,000 upwards).
• Specialist/sub-prime lenders — Lenders who accept poorer credit histories. Terms are usually more expensive but they are more flexible on past defaults or declines.
• Guarantor or director-guaranteed deals — A guarantor with a strong credit history may enable approval or better rates.

For an overview of commercial vehicle options and providers, see our vehicle finance guidance and compare solutions with a Free Eligibility Check.

Good to know: we can match you to brokers who specialise in vehicle lending and understand how to present applications with previous credit issues to maximise your chances.

Learn more about tailored vehicle finance and the providers we work with at our vehicle finance page: vehicle finance.

What improves your chances of approval

If you have a past default or decline, you can still materially improve the odds of a positive decision by handling the application carefully.

Actionable checklist

• Gather clear documents: 3–6 months of business bank statements, recent accounts (if available), proof of identity and VAT/registration documents where applicable.
• Show stable cashflow: Regular invoices, contracts or evidence of repeat business reassures lenders.
• Increase the deposit: A larger deposit reduces lender risk and often improves terms.
• Choose the right vehicle: Newer, lower-mileage vans hold value better and lenders prefer them as security.
• Set realistic borrowing levels: Borrow only what you need — lower loan-to-value improves acceptance.
• Demonstrate settled problems: Evidence that defaults or CCJs have been paid or are historic (older, settled matters are less damaging).
• Use a specialist broker: A broker experienced in adverse-credit van finance will know which lenders to approach and how to present your case.
• Consider a guarantor or personal guarantee: This can unlock more mainstream options but comes with personal risk and should be considered carefully.

What NOT to do: don’t submit multiple full credit applications in a short period (this can worsen your position). Don’t falsify documents — transparency is essential.

Ready to see likely options? Get Quote Now and we’ll match you to the best brokers and lenders for your circumstances.

Common reasons for decline — and how to fix them

Understanding why applications fail helps you take corrective steps.

• Recent or large defaults/CCJs: Remedy — settle the debt where possible, or wait 6–12 months and show steady repayment behaviour and improved cashflow documentation.
• Too small trading history or turnover: Remedy — consider a larger deposit, or apply via lenders that accept shorter trading histories; provide forward contracts or predictable income evidence.
• Incorrect or inconsistent information: Remedy — ensure company records, bank statements and ID match exactly; small discrepancies often trigger declines.
• Vehicle unsuitable for lender criteria: Remedy — choose a van that fits the lender’s age/mileage limits or lower the requested loan amount.
• Affordability concerns: Remedy — reduce term or loan amount, add a guarantor, or show a buffer in your bank statements.

Costs, terms and what to expect (realistic)

With imperfect credit you should budget for:

• Higher interest rates and fees than prime customers — specialist lenders price for risk.
• Larger deposit requirements or lower maximum loan-to-value ratios.
• Shorter maximum terms in some cases, which increases monthly payments.
• More documentation and time to underwrite the application.

Always compare APRs, total cost of credit and fees (arrangement fees, admin charges and early repayment penalties). Getting multiple quotes is essential — we’ll match you with providers so you can compare in hours. If you need at least £10,000 of funding, we can help you find appropriate lenders and brokers.

How UK Business Loans helps

We don’t lend. Instead we:

• Offer a free, no-obligation eligibility check to understand your situation quickly.
• Match your enquiry to lenders and brokers who have experience placing van finance for businesses with imperfect credit.
• Speed up the process so you get contact and quotes rapidly — typically within hours during business days.

Start with a short enquiry (it takes around 2 minutes). Your enquiry will not affect your credit score. If you decide to proceed with a lender, they may carry out a full credit check.

Get a Free Eligibility Check — no obligation, quick matching to lenders and brokers who can help.

Frequently asked questions

Can I get a van on finance with a default?

Possibly. Lenders look at how old the default is, whether it’s been settled, and your current business performance. Specialist lenders or guarantors can improve your chances.

Will enquiring through UK Business Loans hurt my credit score?

No. Submitting an enquiry via our site is a soft pre-check and does not create a credit search. Lenders may do hard searches later if you proceed.

How big a deposit will I need?

Deposits vary by lender and the quality of your credit file. A larger deposit generally improves approval chances and can lower monthly payments.

How long after a CCJ or bankruptcy can I get finance?

That depends on the type of marker and the lender. Older, settled issues pose less risk. Bankruptcy or IVAs usually require longer waiting periods; speak to a specialist broker for tailored advice.

Are there options for fleet or multiple vans?

Yes. Fleet finance providers have different underwriting and may consider overall business performance rather than single-vehicle credit risk.

What documents will I need?

Typically: ID, company registration details, 3–6 months of business bank statements, recent accounts (if available), VAT registration (if applicable) and vehicle quotes/specs.

Can a guarantor help?

Often yes. A guarantor or director guarantee can broaden lender options, but it transfers risk to the guarantor and should be used carefully.

Final summary & legal note

Getting van finance with less-than-perfect credit, previous defaults or a past decline is often possible, but expect trade-offs: higher costs, more paperwork and specialist underwriting. The faster route to clarity is a quick, free eligibility check so you know which lenders or brokers are most likely to help.

Start Your Free Eligibility Check

Consumer information: UK Business Loans is an introducer. We do not lend money or provide regulated financial advice. We connect businesses to lenders and brokers who may be able to help. All lending is subject to lender status and criteria. Submitting an enquiry via UK Business Loans does not affect your credit score; lenders may perform credit checks if you proceed, which may affect your credit file. We typically place loans from £10,000 and upwards.